Bitcoin (BTC) is now nearly 50% below its all-time high set four months ago.
And according to Bitwise Chief Investment Officer Matt Hougan, there is “never a single reason why the crypto market falls,” but rather multiple factors at work.
Hougan believes there are six major drivers behind the downturn.
Chief among them is long-term investors selling to “front-run the four-year cycle.” Hougan estimates those investors sold over $100 billion of BTC last year.
Another key factor is shifting investor attention, thanks to AI stocks and precious metals.
Hougan also blames a historic leverage liquidation event on October 10th of last year, concerns about Fed leadership, worries over quantum computing risks and broader macro risk-off sentiment.
“Could it fall further? Yes, it’s possible, if history is any guide. Previous drawdowns have been significantly larger than the current 54% fall from the peak… And prior crypto downturns have tended to last 12-13 months, meaning this one could have a ways to go.
Our internal ‘market bottom’ models suggest the probability of a bottom is increasing, but it’s not a surety.”
Hougan says crypto is a more mature asset class than it was in the past, and potential catalysts include regulatory progress such as the Clarity Act, a return to risk-on markets, progress on quantum, rising rate-cut expectations, and crypto breakthroughs connected to the rise of AI.
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The post Bitwise CIO Says AI and Precious Metals Helped Spark Bitcoin Downturn, And Several Catalysts Could ‘Turn Things Around’ appeared first on The Daily Hodl.
Bitcoin (BTC) is now nearly 50% below its all-time high set four months ago. And according to Bitwise Chief Investment Officer Matt Hougan, there is “never a single reason why the crypto market falls,” but rather multiple factors at work. Hougan believes there are six major drivers behind the downturn. Chief among them is long-term
The post Bitwise CIO Says AI and Precious Metals Helped Spark Bitcoin Downturn, And Several Catalysts Could ‘Turn Things Around’ appeared first on The Daily Hodl. Bitcoin, ai, BTC, Crypto, News, Price, quantum
This articles is written by : Nermeen Nabil Khear Abdelmalak
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